What is a Mortgage Investment Corporation (MIC)?
A MIC is a Canadian investment structure (defined under Section 130.1 of the Income Tax Act) that pools capital from many investors to lend on mortgages secured by real estate. Instead of buying property yourself, you own shares in the pool of mortgages.
By law, a MIC must distribute essentially all of its net income to shareholders each year. Those distributions are taxed in your hands as interest income — which is why holding a MIC inside a registered plan (RRSP, TFSA, etc.) can be tax-efficient. The Morex Fund is a MIC focused on short-term residential mortgages in Ontario.
What is an Exempt Market Dealer (EMD)?
An EMD is a firm registered with a securities regulator — in our case the Ontario Securities Commission — to sell securities that are exempt from the prospectus requirement. These are private, alternative investments offered to qualified investors under exemptions in National Instrument 45-106, rather than through the public stock market.
Morex Asset Management Corp. is the registered EMD through which shares of the Fund are offered. Being registered means the dealer, and the people who deal with you, are overseen by the regulator and held to know-your-client and suitability obligations.
Who is an "Accredited Investor"?
Because these investments are offered under a prospectus exemption, they're generally available only to accredited investors. Under NI 45-106, an individual typically qualifies if they meet at least one of:
- Financial assets (cash and securities, net of related liabilities) worth more than $1,000,000; or
- Net income before taxes over $200,000 (or $300,000 combined with a spouse) in each of the last two years, with a reasonable expectation of the same this year; or
- Net assets of at least $5,000,000.
Your dealing representative confirms your eligibility before any investment. These thresholds are a summary — the full definition is in NI 45-106.
Can I invest through my registered accounts?
Yes. Shares of the Fund are eligible to be held in the following registered plans:
Registered Retirement Savings Plan — contributions are tax-deductible and growth is tax-deferred until withdrawal.
Tax-Free Savings Account — growth and withdrawals are tax-free.
Registered Retirement Income Fund — the income-paying account an RRSP converts to in retirement.
Locked-In Retirement Account — holds pension money transferred out of an employer plan.
How do I earn — and what is DRIP?
The Fund pays distributions quarterly, generated from the interest on its mortgage portfolio. You can take those distributions as income, or enrol in the Distribution Reinvestment Plan (DRIP), which automatically reinvests them into additional shares so your investment compounds over time.
How does a MIC compare to a GIC?
A GIC and a MIC solve different problems. A GIC prioritizes certainty; a MIC targets a higher return in exchange for taking on real-estate lending risk. Here's an honest side-by-side:
| Feature | GIC | Morex Fund (a MIC) |
|---|---|---|
| Typical return | ~3–4% per year* | 8.06% historical on Class A shares (7–10% target)† |
| Principal | Guaranteed; CDIC-insured to applicable limits | Not guaranteed, not insured — secured by registered mortgages on real estate |
| Liquidity | Fixed term; often not redeemable early | One-year closed period, then quarterly redemption with 90 days' notice |
| Income | Interest, at maturity or periodically | Distributions paid quarterly (taxed as interest) |
| Who can invest | Anyone | Accredited investors only |
*GIC rates vary by term and issuer and change over time; the figure shown is a general illustration, not a current quote. †The 8.06% figure is the average annualized return on Class A shares after all fund fees, since inception in February 2012, as of April 30, 2026 (8.31% assuming distributions are reinvested). The 7–10% figure is a targeted/historical yield range. Past performance is not indicative of future results, and returns are not guaranteed. Unlike a GIC, an investment in the Fund is not guaranteed or insured and you could lose some or all of your principal. This comparison is for information only — see our Disclosures and the Offering Memorandum.
What are the risks?
Every investment carries risk. An investment in the Fund is not guaranteed and not CDIC-insured, and you could lose some or all of your principal. It is relatively illiquid (see the redemption terms above), concentrated in residential mortgages, and its value depends on borrowers repaying and on real-estate conditions. The Offering Memorandum sets out the risk factors in full, and you should read it carefully before investing.
Still have questions?
Speak with our team — we'll walk you through it and answer anything, with no obligation.
